Should I Raise More? 5 Principles For Entrepreneurs

3 min read

Many things about startups are about power laws — fundraising included. The best companies do attract disproportionate attention and the entrepreneurs are faced with the choice, if not pressure, of raising more. Below are five key principles on how to make the best decision. 1) Dilution Vs Runway — This is the heart of the dilemma since entrepreneurs naturally don’t want more dilution but also seek enough of a runway. One standard solution is to change the deal terms, typically by having a higher cap / valuation, to keep an acceptable dilution. The principal tension here is many investors have…...

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Amit Garg I have been in Silicon Valley for 20 years -- at Samsung NEXT Ventures, running my own startup (as of May 2019 a series D that has raised $120M and valued at $450M), at Norwest Ventures, and doing product and analytics at Google. My academic training is BS in computer science and MS in biomedical informatics, both from Stanford, and MBA from Harvard. I speak natively 3 languages, live carbon-neutral, am a 70.3 Ironman finisher, and have built a hospital in rural India serving 100,000 people.